03. SACYR VALLEHERMOSO GROUP

ORIGINS AND BACKGROUND

Grupo Sacyr - Origins and Background

25 years of work

After 25 years of operations, the Sacyr Vallehermoso Group has become a leading business and construction group in both the Spanish and the European markets. The entrepreneurial spirit of the Group's property developers and the day-to-day work of its management team have turned what was the seed of an idea into a reality, one whose results underline the success of the path it is following: 20,422 jobs, a business portfolio of more than €50,400 million, estimated future Ebitda of 24,000 million of euros, five complementary areas of business activities suitably diversified in terms of sector and geographical distribution, revenue of 3,950 million of euros in 2011, Ebitda of 533 million of euros in the year, in addition to a major stake in the Repsol YPF Group, Spain's second largest company in turnover and one of the 100 largest companies in the world.

Sacyr Vallehermoso's technologic prowess, its permanent quest for excellence in its projects, its steadfast service to clients, and rigorous compliance with project completion schedules and budgets have all become permanent hallmarks of the Group. These values, along with the loyalty and commitment of every one of its employees, have played a decisive role in bringing the Group to where it is today.

Additional businesses

From their beginnings in civil works (Sacyr) and real-estate development (Vallehermoso), the two companies have maximised a number of opportunities to consolidate their businesses and acquire highly valuable assets: the start of a concession business in Chile, the Portuguese construction group Somague, the Prima Inmobiliaria real-estate company, and Empresa Nacional de Autopistas. After the two companies merged in 2003, the real-estate development and rental activities undertaken through Testa came together seamlessly to complement the Group's construction and concession businesses, giving them a highly consolidated portfolio of activities. Today, the SyV Group is a leading player in each sector in which it operates.

Over the past few years, the Group's activities have been underpinned by a combination of organic growth and well-planned M&A deals together with a global commitment to growing international diversification.

The high-potential services sector (water, renewable energies, environmental businesses and multi-services) has been another key strategic area for the Group. In record time, Valoriza secured a portfolio worth more than €12,000 million and garnered market recognition for the quality and prestige of its name. Internal efficiency and the acquisitions of Sufi and other companies paved the way for the Group to continue the success it has seen since its very first days.

Lastly, after the purchase of a significant holding in Repsol YPF, Sacyr Vallehermoso locked in its position as a core shareholder in the oil and gas giant. Today, our Company's 10% stake gives us an asset of enormous value in the energy sector.